Road Maintenance Fees - do they really survive the foreclosure? Maybe...

I just recently closed on a house I won at the flagpole, and had a surprise road maintenance charge on the settlement statement.  Since I had done my due diligence prior to auction, I knew there was a lien against the property from the road maintenance association (let's call them KRL), but KLR was a named defendant in the foreclosure, and the foreclosure order the judge signed clearly stated "all named Defendants junior to Plaintiff's interest shall be terminated from right, title, and interest in the Property."  So owing these past due fees didn't make any sense to me!  

Initially escrow was trying to charge me for drafting a lien release and recording it.  I pushed back and they agreed the lien had been wiped out due to the foreclosure and recording a release wasn't necessary.  But KLR insisted the amount (accrued since 2012 with attorney fees included!) was still owed.  After a bit of phone tag, I finally got the KLR attorney on the phone to discuss.  Fortunately he was very kind and helpful in explaining KLR's position.  He agreed that the foreclosure wiped out any liens KLR had attached to the property, but the prior owner still owed those amounts.  Makes sense.  So why am I being charged?  He then explained that the KLR CC&Rs - which I had agreed to by purchasing the property - state that any amount owing will be an obligation of the successor owner.  So... even though the property itself was no longer encumbered, the prior owner still was, and therefor I now owe it.  Shoot.

Is the KLR attorney correct?  Sounds valid, and the amount isn't big enough to try to take it back to the judge for further determination.  And the roads desperately need work, so I've paid their demand and I'm hopeful KLR will use the big check they just received to fill some potholes.  Lesson learned.  

12-415 Ole Ole Street, Pahoa, Hawaii 96778 - Foreclosure Notice

 

From Hawaii Tribune Herald 04/15/22:

Notice #: 0001368232-01
Foreclosures

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NOTICE OF FORECLOSURE SALE Pursuant to Findings of Fact and Conclusions of Law; Order Granting Plaintiff’s Renewed Motion for Summary Judgment and for Interlocutory Decree of Foreclosure filed April 28, 2020, in U. S. Bank National Association, as Trustee, Successor in Interest to Bank of America, National Association, as Successor by Merger to LaSalle Bank National Association, as Trustee, on Behalf of the Holders of Washington Mutual Asset-Backed Certificates, WMABS, Series 2006-HE1 v. Jan Moxley, et al., Civ. No. 17-1-0292, Circuit Court of the Third Circuit, State of Hawaii, the undersigned Commissioner will sell the following described property at public foreclosure sale on the date and at the time set forth below. PROPERTY DESCRIPTION: Real Property situate at Keauohana, Puna, Island and County of Hawaii, State of Hawaii, being Lot 2, area 8,220 square feet, more or less, of the “Kehena Beach Estates, Unit 1”, as shown on File Plan No. 905, and further identified as TMK:(3)1-2-030-026, address 12-415 Ole Ole Street, Pahoa, Hawaii 96778. The house is of double-wall wood frame construction, with a corrugated iron roof, and contains three bedrooms and two and one-half bathrooms. The area under roof is 2,973 square feet. The house was constructed in 2003. TERMS OF SALE: The property will be sold “as is” at public auction with no upset price. The successful bidder at the auction shall make a down payment to the Commissioner in an amount not less than ten percent of the successful bid price, such payment to be made at the close of the auction in cash, cashier’s check or certified check. Prior to bidding, interested parties must show the Commissioner their ability to make the required down payment, in such form as aforesaid, immediately upon close of the bidding. At the Court’s discretion, the ten percent down payment may be forfeited in full or in part if the successful bidder fails to timely close. The balance of the successful bid price shall be paid to the Commissioner upon approval and confirmation of the sale. All costs and expenses of closing shall be paid by purchaser, including, but not limited to costs of escrow fees, title insurance premiums, conveyance document preparation fees, prorated real property and conveyance tax, recordation and costs of securing possession after closing. The inability of purchaser to secure title insurance or financing shall not be a condition of closing. SALE SHALL NOT BE FINAL UNTIL APPROVED AND CONFIRMED BY THE COURT. OPEN HOUSE: No Open House, by Order of the Court. SALE DATE: Tuesday, May 17, 2022, 12:00 noon, at the front entrance to the Hale Kaulike Courthouse Building, 777 Kilauea Avenue, Hilo, Hawaii. COMMISSIONER: Stephen J. Menezes, 441 Kipuni Street, Hilo, Hawaii 96720; Telephone (808)934-8916. (HTH1368232 4/15, 4/22, 4/29/22)

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18-1343 Volcano Road, Mountain View, Hawaii 96771 - Foreclosure Notice

 

From Hawaii Tribune Herald 04/15/22:

Notice #: 0001368295-01
Foreclosures

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NOTICE OF FORECLOSURE SALE Pursuant to the FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AGAINST ALL DEFENDANTS AND FOR INTERLOCUTORY DECREE OF FORECLOSURE filed March 28, 2022 in Ditech Financial LLC vs. Rodney K. Yamauchi et al., Civil No. 3CC161000233, Circuit Court of the Third Circuit, State of Hawai’i, the Commissioner will sell at public auction the following: PROPERTY ADDRESS: 18-1343 Volcano Road, Mountain View, Hawaii 96771 PROPERTY DESCRIPTION: TMK (3) 1-8-002-005-0000 consisting of a 0.214 acre, more or less, lot per the records of the County of Hawaii Real Property Tax Office upon which is located a single-story, 3 bedroom, 2 bath, 967 sq. ft. house built in 1952. Property is occupied. Please do not disturb occupants. PUBLIC AUCTION DATE: Public auction will be held on Monday, May 16, 2022 at 12:00 p.m. at the front entrance of Hale Kaulike (aka the “Hilo Courthouse”), 777 Kilauea Avenue, Hilo, Hawaii 96720. Protocols to curtail transmission of COVID-19 to be observed as required by law or court orders, if any are in effect, as of the date of the auction. OPEN HOUSES: Open houses will be held from 11:00 a.m. to 1:00 p.m. on Saturday, April 23, 2022 and Sunday, May 1, 2022. TERMS AND METHODS OF SALE: The property will be sold “AS IS” to the highest bidder at public auction with no upset price. SALE IS NOT FINAL UNTIL APPROVED AND CONFIRMED BY THE COURT. The highest bidder for the property is required to make a down payment in cash, certified check, or cashier’s check at the time of the bid in an amount equal to ten percent (10%) of the bid price. The balance of the price shall be paid in cash, certified check, or cashier’s check to the Commissioner after approval and confirmation of the sale by the Court. The purchaser shall pay closing costs, including but not limited to costs of escrow fees, title insurance premiums, conveyance document preparation fees, conveyance tax, recordation and costs of securing possession after closing. The ability of the purchaser to secure title insurance shall not be a condition of closing. FOR FURTHER INFORMATION: Contact Commissioner Robert K. Allen, Esq., P.O. Box 10190, Hilo, HI 96721. EMAIL: HawaiiLawyer@hawaii.rr.com. TEL: 935-3334. WEB: www.HawaiiLawyerOnline.com. (HTH1368295 4/15, 4/22, 4/29/22)

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